Army Awards $30.2M for Textile Bags and Canvas Mills to Fibrotex USA Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $30,196,030 ($30.2M)

Contractor: Fibrotex USA Inc.

Awarding Agency: Department of Defense

Start Date: 2019-07-01

End Date: 2020-07-31

Contract Duration: 396 days

Daily Burn Rate: $76.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LRIP UNITS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $30.2 million to FIBROTEX USA INC. for work described as: LRIP UNITS Key points: 1. Significant award for textile and canvas products, indicating demand in military logistics. 2. Fibrotex USA Inc. secured the contract, suggesting competitive capabilities in this niche. 3. The award falls under the Department of the Army, highlighting defense sector spending. 4. Full and open competition was utilized, promoting market efficiency and potentially better pricing.

Value Assessment

Rating: good

The award amount of $30.2 million for LRIP units appears reasonable given the contract duration and the nature of specialized textile products. Benchmarking against similar defense contracts for durable goods would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically allows for the widest range of potential bidders and fosters price discovery. This method is expected to yield competitive pricing.

Taxpayer Impact: The use of full and open competition suggests that taxpayers are likely benefiting from a market-driven price for these essential military supplies.

Public Impact

Ensures supply of critical textile bags and canvas for military operations. Supports a US-based manufacturer, potentially contributing to domestic industrial capacity. Award reflects ongoing defense procurement needs for logistical equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific unit cost data makes detailed value assessment challenging.
Contract duration is relatively short (396 days), potentially limiting long-term cost efficiencies.

Positive Signals

Awarded via full and open competition, indicating a competitive process.
Contract is for LRIP (Low Rate Initial Production) units, suggesting a potential for larger follow-on orders if successful.
Firm Fixed Price contract type helps control costs for the government.

Sector Analysis

This award falls within the defense sector, specifically related to the procurement of textile and canvas goods used for logistical purposes. Spending benchmarks in this sub-sector are often tied to military readiness and operational tempo.

Small Business Impact

The data indicates that the prime contractor is Fibrotex USA Inc. There is no explicit information provided regarding small business subcontracting participation in this specific award.

Oversight & Accountability

The contract was awarded by the Department of the Army, a major component of the Department of Defense, which has established oversight mechanisms for procurement. The use of full and open competition suggests a transparent award process.

Related Government Programs

Textile Bag and Canvas Mills
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for supply chain disruption if contractor faces issues.
Limited contract duration may not capture long-term cost efficiencies.
Dependence on a single source for this specific award.
Lack of detailed unit cost data for granular value analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.2 million to FIBROTEX USA INC.. LRIP UNITS

Who is the contractor on this award?

The obligated recipient is FIBROTEX USA INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $30.2 million.

What is the period of performance?

Start: 2019-07-01. End: 2020-07-31.

What is the specific unit cost for the textile bags and canvas, and how does it compare to industry benchmarks?

The provided data does not include specific unit cost breakdowns for the textile bags and canvas. The total award is $30.2 million for 3,019,602.98 units. Calculating a rough average unit cost yields approximately $10 per unit. However, without detailed specifications and comparison data for similar military-grade textile products, a precise benchmark assessment is not possible from this information alone.

What are the potential risks associated with relying on a single supplier for these critical textile items, even with full and open competition?

While full and open competition was used for this award, relying on a single supplier, Fibrotex USA Inc., for this specific delivery order carries inherent risks. These include potential supply chain disruptions due to unforeseen events affecting the contractor, quality control issues if oversight is insufficient, and a lack of competitive pressure for future needs if the market for this specific item is limited. The short contract duration mitigates some long-term dependency risk.

How effective is the firm fixed price contract type in ensuring value for money for these LRIP textile units?

The Firm Fixed Price (FFP) contract type is generally effective in ensuring value for money for standardized or well-defined products like textile bags and canvas, especially during Low Rate Initial Production (LRIP). It shifts the risk of cost overruns to the contractor, providing budget certainty for the government. This encourages the contractor to manage costs efficiently to maximize profit, thereby benefiting the taxpayer.

Industry Classification

NAICS: Manufacturing › Other Textile Product Mills › Textile Bag and Canvas Mills

Product/Service Code: TEXTILE/LEATHER/FUR; TENT; FLAG

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911QY17R0023

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1725 I ST NW STE 300, WASHINGTON, DC, 20006

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $30,196,030

Exercised Options: $30,196,030

Current Obligation: $30,196,030

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911QY18D0210

IDV Type: IDC

Timeline